24/7 Wall St. screened out selective short interest data with the latest changes from the settlement date of June 29, 2012 versus June 15, 2012 in shares of the following: Alcatel Lucent S.A. (NYSE: ALU); Banco Santander, S.A. (NYSE: STD); Bank of America Corporation (NYSE: BAC); Barnes & Noble, Inc. (NYSE: BKS); Dendreon Corporation (NASDAQ: DNDN); Diamond Foods, Inc. (NASDAQ: DMND); First Solar, Inc. (NASDAQ: FSLR); Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR); Groupon, Inc. (NASDAQ: GRPN); Human Genome Sciences, Inc. (NASDAQ: HGSI); LinkedIn Corporation (NYSE: LNKD); Netflix, Inc. (NASDAQ: NFLX); RadioShack Corporation (NYSE: RSH); Research in Motion Limited (NASDAQ: RIMM); and Sirius XM Radio Inc. (NASDAQ: SIRI).

Read Also: Technology Earnings Set For Disappointment

We have added in some selective color added if applicable:
 
Alcatel Lucent S.A. (NYSE: ALU) saw a drop of almost 9% in its short interest to 21.34 million shares in the short interest after a recent peak of more than 23 million shares short.

Banco Santander, S.A. (NYSE: STD) saw a huge drop of 26.4% in its short interest to 6.599 million shares; this is way down from the peak.

Bank of America (NYSE: BAC) saw a rather large drop of 9.3% to 231 million shares at the end of June.  This is still very elevated versus the 142.3 million shares short at the end of April.

Barnes & Noble, Inc. (NYSE: BKS) saw a double-digit drop of 11.3% to 14.2 million shares in the short interest as of the end of June.  This short interest was 19.768 million shares at the end of April.
 
Dendreon Corporation (NASDAQ: DNDN) saw a 10% gain in its short interest by the end of June to 37.79 million shares short.

Diamond Foods, Inc. (NASDAQ: DMND) saw another small drop of 5.9% to 9.37 million shares short as of the end of June.  That is actually the smallest short interest going all the way back to last December.  Maybe this has played out now as the easy short-sale money has been made. 

Facebook, Inc. (NASDAQ: FB) is still very new but it saw a huge gap up in short selling despite that it has recovered handily from the bottom.  At the end of June the short interest was up 32.9% to 60.15 million shares in the short interest.  The short interest history was 45.2 million shares at June 15 settlement date versus 34 million shares short at the end of May.

First Solar, Inc. (NASDAQ: FSLR) saw another upwardly moving short interest with a 10.2% gain in shares short to 27.13 million shares.  That appears to be the highest short interest on a nominal share count over what we have seen in months and months.

Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) saw a big jump in the short interest after some prior drops.  The gain was by 20.3% in the short interest to 27.97 million shares.  Maybe short sellers think the buyout rumors are as dead as they always were.

Groupon, Inc. (NASDAQ: GRPN) saw yet another double-digit gain by 12.5% to 27.4 million shares.  This appears to be yet one more record high nominally in the short interest.
 
Human Genome Sciences, Inc. (NASDAQ: HGSI) saw a 5% drop at the end of June in its short interest to 17.29 million shares, perhaps as investors think this could be acquired by another firm other than GSK.

LinkedIn Corporation (NYSE: LNKD) saw a decent drop of about 8% to 5.15 million shares short at the end of June.
 
Netflix, Inc. (NASDAQ: NFLX) saw a double-digit drop in short selling with its short interest down 10.1% at the end of June to 12.7 million shares short.

Nokia Corporation (NYSE: NOK) saw a surprising drop in the short interest.  Maybe someone is worried that the company can be acquired or manage to save itself.  The short interest at the end of June was down 7.4% to 156.98 million shares.

RadioShack Corporation (NYSE: RSH) saw just a double-digit gain in the short interest at the end of June over the middle of June.  The gain in shares short was over 42.5 million shares from 38 million shares.  Is this remaining a consumer electronics retail deathwatch?
 
Research in Motion Limited (NASDAQ: RIMM) remains on deathwatch, even for the short sellers.  The gain of shares short was by more than 16% to 85.4 million shares as the short interest is higher than it has been in a year or more.
 
Sirius XM Radio Inc. (NASDAQ: SIRI) saw a very small drop in the short interest at the end of June by only 2.8% to 289.95 million shares short. 

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Spain can get all the bailout funds it wants, Greece can argue about staying in the Euro all it wants, and the French can keep claiming that their reason for being is to still get a leftist politician to tax the rich so that 100,000 to 140,000 workers can still qualify for retirement at age 60 rather than 62.  The downgrades in Europe are still going to hit the PIIGS.

We continue to expect that Portugal, Italy, Ireland, Greece, and Spain will continue to face more downgrades.

We also no longer even count Greece as a Euro-Zone nation permanently.  Greece has passed the point of no return and they are going to have to go back to selling olive oil, feta cheese, and living off of summer tourism again.  Oh, and they will have to start paying some taxes.  Either way, more downgrades are coming…

Again, today’s cut was just on Spain.  This was not the last downgrade of the sovereign ratings of the PIIGS.  The major economies of Europe better start preparing for more cuts too.

Here is how the two largest Spanish banks are holding up:  Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is still up 0.7% at $6.52 in New York ADR trading against a 52-week range of $5.57 to $12.13.  Its larger rival, Banco Santander, S.A. (NYSE: STD), is still up 0.7% at $6.10 in New York ADR trading against a 52-week range of $5.19 to $11.89.  iShares MSCI Spain Index (AMEX: EWP) is still up 0.3% at $23.35 and even the large Telefonica SA (NYSE: TEF) is down only 0.55% at $12.24 against a 52-week range of $10.90 to $24.82.

Unfortunately, the markets in the U.S. still have sold off.  It is interesting that U.S. valuations care about Spanish downgrades more than Spanish investment vehicles care.

JON C. OGG

24/7 Wall St. screened out selective short interest data with the latest changes from the settlement date of April 30, 2012 versus the prior April 13, 2012 in shares of the following: Alcatel Lucent S.A. (NYSE: ALU); Banco Santander, S.A. (NYSE: STD); Bank of America Corporation (NYSE: BAC); Barnes & Noble, Inc. (NYSE: BKS); Dendreon Corporation (NASDAQ: DNDN); Diamond Foods, Inc. (NASDAQ: DMND); First Solar, Inc. (NASDAQ: FSLR); Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR); Groupon, Inc. (NASDAQ: GRPN); Human Genome Sciences, Inc. (NASDAQ: HGSI); LinkedIn Corporation (NYSE: LNKD); Netflix, Inc. (NASDAQ: NFLX); RadioShack Corporation (NYSE: RSH); Research in Motion Limited (NASDAQ: RIMM); and Sirius XM Radio Inc. (NASDAQ: SIRI).

This month also includes the debut of the short interest of Facebook, Inc. (NASDAQ: FB).  The short interest was 34.01 million shares as of the May 31 settlement date.  Morgan Stanely has since started to lend shares out to short sellers.

After seeing this trend, the “Sell in May and go away!” theme had some very mixed trends.  The short interest changes are for the May 31 settlement date versus the May 15 settlement dates, with selective color added if applicable:

Alcatel Lucent S.A. (NYSE: ALU) saw another rise in the short interest to 21.07 million shares at the end of May and that was up over 16% from mid-May after having come down after short sellers locked in profits after the earnings botch.

Banco Santander, S.A. (NYSE: STD) is not one of our usual short interest names but the Spain bailout highlights this one… The short interest was down 5.3% at the end of May to 23.195 million shares short.  This is still active considering the most recent news out of Europe.

Bank of America (NYSE: BAC) saw a massive short interest gain with 263.18 million shares in the short interest at the end of May.  This is up 74% from the 150.7 million shares short in mid-May and versus 142.3 million shares short at the end of April.

Barnes & Noble, Inc. (NYSE: BKS) saw a small decrease in its short interest based on lower activist involvement.  The short interest was down 3.7% to 15.45 million shares.  This short interest was 19.768 million shares at the end of April.

Dendreon Corporation (NASDAQ: DNDN) hardly budged in its short interest, which is surprising considering that the end of May was immediately ahead of the key ASCO annual meeting which is often a key new generator for cancer biotech stocks.  The drop was -0.4% to 33.1 million shares in the short interest as of the end of May.

Diamond Foods, Inc. (NASDAQ: DMND) is still a battleground stock but its short interest appears to have already peaked.  The end of May showed a drop of 4% in the short interest to 10.4 million shares and that is down from 11.48 million shares short ta the end of April.  Too bad that the short sellers may have missed the potential delisting news this week.

First Solar, Inc. (NASDAQ: FSLR) saw short sellers continue to get out of the way now that the drop has been so massive.  The end of May saw a short interest drop of 10.7% to 21.61 million shares in the short interest.  This was 23.7 million shares in its short interest just at the end of April.

Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) saw a small drop in the short interest with -3.2% in the short interest at 23.56 million shares at the end of May.  This is far lower in short selling activity from last year’s more active short selling peak.

Groupon, Inc. (NASDAQ: GRPN) saw a double-digit gain of 13.5% to 23.51 million shares in its short interest at the end of May.  This was the second rise in a row and is up from 17.427 million shares short at the end of April.

Human Genome Sciences, Inc. (NASDAQ: HGSI) saw a big drop as short sellers again got out of the way.  The end of May short interest was down almost 14% to 19.71 million shares and that is down from over 46.4 million shares short if you go back to mid-April.

LinkedIn Corporation (NYSE: LNKD) saw a large gain in the short interest ahead of another lock-up ending. The end of May short interest was up 18.3% to 5.468 million shares.

Netflix, Inc. (NASDAQ: NFLX) is back in the interest of short sellers with the gains in the end of May’s short interest rising another 15% to 13.24 million shares short.

Nokia Corporation (NYSE: NOK) appears to be continuing to show that short sellers have taken their profits.  The end of May short interest was down 17.5% to 154.4 million shares and that compares to 195.14 million shares in the short interest at the end of April.

RadioShack Corporation (NYSE: RSH) saw just a small rise of 3.4% at the end of May’s short interest to 35.599 million shares.  The short sellers have been winning and the short interest had been growing but has since seemed to hit a plateau.

Research in Motion Limited (NASDAQ: RIMM) may still be down and out, and it saw a small gain of 5.2% in the short interest at the end of May to 66.789 million shares short.  This had been previously gotten as low as 53.7 million shares short at the end of April.

Sirius XM Radio Inc. (NASDAQ: SIRI) saw a slight gain of 4.2% in the short interest to 306.5 million shares short at the end of May. This may reflect the Liberty/Malone efforts and the short interest is now back up close to the 300+ million shares short in mid-March.

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JON C. OGG

Spanish stocks were up big earlier with Spain’s IBEX 35 Index up almost 5% earlier this morning before U.S. investors were awake.  The news had European markets higher on reaction to the bailout plan for the troubled banks in Spain.  That was then.  The markets are greedy, and now the focal point is shifting back to Greece ahead of this coming weekend’s election. To show just how muted this is, the ADR of National Bank of Greece SA (NYSE: NBG) is only flat at $1.21 in New York trading against a 52-week range of $1.12 to $7.55.

Here is how the two largest Spanish banks are holding up.  Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is up 1.8% at $6.58 in New York ADR trading against a 52-week range of $5.57 to $12.13.  Its larger rival, Banco Santander, S.A. (NYSE: STD), is up 1.3% a $6.19 in New York ADR trading against a 52-week range of $5.19 to $11.89.  For another disappointment, Spain’s Telefonica SA (NYSE: TEF) is up only 0.5% in New York ADR trading after selling shares of China Unicom (NYSE: CHU) back to the Chinese to raise about $1.4 billion.  China Unicom shares are spiking up by 5% to $14.24 in New York, so you have to wonder who got the better deal here.

The broader market measure is even more muted.  iShares MSCI Spain Index (AMEX: EWP) is up 0.5% at $23.56 against a 52-week range of $20.98 to $42.94.

Maybe you can argue that the news was already getting priced in last week when the markets were rallying as the ETF and the two banks did show some share recovery ahead of the news.  Then there is the argument that Spain is only one step of a multi-hurdle process.

The DAX in Frankfurt, Germany is still up 1.4% at 6,213; the CAC 40 in Paris, France is up only 0.6% at 3,070; and the FTSE 100 in London is up 0.5% at 5,462.50.

Spain may have a lifeline thrown its way.  How this pans out in the end-game is still up for grabs.  Just do not forget that there are four other PIIGS members which have to be dealt with sooner rather than later.

JON C. OGG

The news is now really hurting Spanish securities trading in New York.  iShares MSCI Spain Index (AMEX: EWP) is down only $0.04 at $23.03. Banco Santander, S.A. (NYSE: STD) is actually up 1% at $5.99 and Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is up 0.6% at $6.39. It is interesting that this was a 3-notch downgrade.

Some of the factors are the obvious and others are more specific.  The likely fiscal cost of restructuring and recapitalising the Spanish banking sector is now being put at around 60 billion Euros, or 6% of GDP, according to Fitch.  That cost could go as high as 100 billion Euros in a more severe stress scenario.  The previous baseline from Fitch was only $30 billion or 3% of GDP.

Gross general government debt is now projected to peak at 95% of GDP in 2015 under the new baseline bank recapitalization.  Fitch also forecasts that Spain will remain in recession through the remainder of this year and 2013 rather than having a mild recovery in 2013. A high level of foreign indebtedness has made Spain vulnerable to contagion from the ongoing crisis in Greece.

Again, we keep saying this and we will continue to keep saying it… THIS IS NOT THE LAST DOWNGRADE IN EUROPEAN PIIGS.

JON C. OGG

Banco Santander, S.A. (NYSE: STD) is down 5.5% at $5.35 in early New York trading versus a previous 52-week range of $5.52 to $11.92.

Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is down 5.5% at $5.78 in early New York trading versus a previous 52-week range of $5.96 to $12.13.

The key ETF is showing the weakness has spilled over into the broader segments as well in Spain.  iShares MSCI Spain Index (AMEX: EWP) is down a sharp 4.2% at $21,93 and this will also be a new 52-week low as the prior trading range over the last year has been $22.71 to $43.28.

JON C. OGG

The financial damage is massive and the question boils down to how far the contagion can spread throughout Europe (and elsewhere).  Austerity measures throughout Europe are now backfiring.  France put in Hollande as a move back to the left as Sarkozy’s austerity measures were just going to be too great for the population to want.  Inflation before cutbacks!  Live well today, let the kids figure it out when hey get older!  Hell, even The Netherlands could not agree on a budget and they have their act together financially just about as well as any of the top nations.  Angela Merkel’s party suffered a regional election loss in recent weeks as well.

Greece will not likely be the only casualty here.  Portugal, Spain, and Ireland are all at risk.  Sinn Fein has been making policy statements about austerity and the Euro inclusion and went as far as issuing a video to call for a NO vote in the Austerity Treaty referendum.  Spain has a serious capital shortfall in its banks if the reports over the size of the property value losses versus face value of loans is even only one-third true.  Portugal is just totally irrelevant to Europe, but it is upside down and at risk.  And Italy is just simply “too big to bail” with its debt and spending issues that lie ahead.

The fallout is running top to bottom… safe havens to PIIGS… We are seeing all the new 52-week lows come into play in some positions while many others are still above those recent lows.

iShares MSCI Germany Index (AMEX: EWG) is down 2.2% at $19.87 against a 52-week low $16.96; iShares MSCI France Index (AMEX: EWQ) is down 2.4% at $18.61 against a 52-week low of $17.88. The there is “the Euro currency ETF” via the CurrencyShares Euro Trust (AMEX: FXE) with a drop of 0.9% at $125.03 (new 52-week low) as the Euro is at the lowest point since July 2010.  iShares MSCI Italy Index (AMEX: EWI) is down 3.8% at $10.26 and only one-penny above the $10.25 52-week low.

Ireland… The Bank of Ireland (NYSE: IRE) is down 2% at $4.90 against a 52-week low of $3.99. The New Ireland Fund, Inc. (NYSE: IRL) is down 1.1% at $7.79 against a 52-week low of $6.49.

Greece… National Bank of Greece SA (NYSE: NBG) is flat at $1.52 against a 52-week low of $1.45; Global X FTSE Greece 20 ETF (AMEX: GREK) is down 3.5% at $9.99 at a new 52-week low (prior $10.25 low). The election in mid-June will likely be the key determining factor here.  If not, the situation is still not over and Greece is going to be an ongoing flight risk.

Spain… iShares MSCI Spain Index (AMEX: EWP) is down 3.3% at $22.81 and under the prior 52-week low of $22.87.  Banco Santander, S.A. (NYSE: STD) is down 3.5% at $5.58 against a 52-week low of $5.52 and Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is down 4% at $6.02 against a 52-week low of $5.96.

Vanguard MSCI Europe ETF (AMEX: VGK) tracks the  MSCI Europe Index, which is made up of approximately 460 common stocks of companies located in 16 European countries-mostly companies in the United Kingdom, France, Switzerland, and Germany.  It is down 2.6% at $39.85 against a 52-week low of $38.40.  The SPDR EURO STOXX 50 (AMEX: FEZ) tracks the STOXX Europe 50 Index and it is down 2.9% at $26.93 against a 52-week low of $26.10.

This is sort of funny on the surface if you don’t think about the financial and human tragedy that is unfolding.  It is not exactly as though the global economy rose this much when they launched the Euro.  Little reward, massive pain!

Sadly, Europe is starting to feel like Latin America of the 1980s and early 1990s all over again.

JON C. OGG

So the question is, ahead of a summit aimed at putting up fences in Europe to contain problems can the banks really make it.  We have heard all sorts of new stories and rumors and frankly it is hard to know what is posturing, what is malarkey, and what is reality.  Some talk about bank guarantees is out there, and other chatter is on deeper assistance.  And what about lending directly to banks but not the nations? Reuters has a speech today worth a read that underpins some of the problems and hopes for Europe given by ECB policymaker Joerg Asmussen.

A look at the banking ADRs today signals that the bank issues “may” be manageable for Greece or Ireland.  The problem is that this could just be a short-covering head fake too.  The ADRs for Spain are still in the red.

National Bank of Greece SA (NYSE: NBG) is up 4% at $1.56 against a 52-week range of $1.45 to $7.65.  The Bank of Ireland (NYSE: IRE) is up 3.8% at $4.93 against a 52-week range of $3.99 to $17.50.

Banco Santander, S.A. (NYSE: STD) is down 1.2% at $5.70 against a 52-week range of $5.52 to $11.92; Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is down 1.1% at $6.19 against a 52-week range of $5.96 to $12.13.  An IIF report on loan losses is holding these banks down today.

And what about broader exposure?  The ADR of Deutsche Bank AG (NYSE: DB) is up 2.6% at $36.95.

Barclays PLC (NYSE: BCS) is technically not even a part of the Euro-woes as far as sovereignty, but it would be absolutely naive to think they have no exposure.  Ditto for UBS AG (NYSE: UBS) in Switzerland.  Barclays is up 2.6% at $11.44 against a 52-week range of $8.38 to $18.40; and UBS is up 1.6% at $11.44 against a 52-week range of $10.41 to $19.62.

JON C. OGG

Several media outlets report that one proposal to help fund banks, and indirectly the nations in which they are based, is to use part of the 500 billion euro European Stability Mechanism meant to bail out countries like Portugal and Spain. The Financial Times reports that discussions about the possibility heated up before the G8 summit. “Senior officials said those talks have focused on using the €500bn European Stability Mechanism to directly inject capital into banks,” the paper reported. This program might exist alongside another plan to have the European Central Bank buy the sovereign bonds of Spain, among others. The ECB has objected to similar plans in the past.

The direct bank aid program may make sense on paper. Spain, in particular, has very troubled banks. Some got into that trouble because they made large numbers of loans based on real estate. The value of that real estate collapsed during the recent recession in a way similar to what happened in the U.S. The Spanish banking sector situation is so bad that Moody’s recently downgraded 16 banks based in the country, including the huge Banco Santander (NYSE: STD). The country’s chance to help these financial firms took another blow. Spain recently got into more trouble in terms of its own bailout because it missed its 2011 deficit-to-GDP ratio goal. The government said the figure was 8.9% instead of the 8.5% it has expected.

The debate about which countries in Europe to aid is extremely complex and contentious. Even the fate of Greece is constantly debated. Should its neighbors throw what many believe is good money after bad? Maybe, if it keeps the eurozone together. But, if the leaders who have the ability to potentially bail out countries cannot decide on which countries, when, and under what circumstances, how can those decisions possibly be made bank system by bank system or bank by bank?

Douglas A. McIntyre

National Bank of Greece SA (NYSE: NBG) appears to be challenging all-time lows on an adjusted basis as shares are down 12% at $1.51 in active trading.  The Global X FTSE Greece 20 ETF (AMEX: GREK) is down 1.9% at $10.90 and this hit a new low today as Greek shares have reportedly hit lows not seen in years and years.

What is interesting is that Coca-Cola Hellenic Bottling Company S.A. (NYSE: CCH) is actually up 5.3% at $16.25 against a 52-week trading range of $14.75 to $27.40.  This outfit is the bottler of The Coca-Cola Company’s products located in Athens which distributes some 90 brands (including Coke) up into parts of the developed nations in Europe and into Eastern Europe and a few other select nearby markets.

We are seeing a mixed move in other banks in the lands of the PIIGS in ADR trading in New York. The Bank of Ireland (NYSE: IRE) is up 4% at $5.13; Banco Santander, S.A. (NYSE: STD) is down 1.5% at $5.72; and Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is down 0.7% at $6.24.

Here is a comment from a speech from ECB President Mario Draghi today: “Before concluding, let me comment briefly on the difficult situation in Greece. Since the Treaty does not foresee anything on exit, this is not a matter for the ECB to decide. While the ECB will continue to comply with the mandate of keeping price stability over the medium term in line with Treaty provisions and preserving the integrity of our balance sheet, I want to state that our strong preference is that Greece will continue to stay in the euro area.”

Keep in mind a report from Reuters yesterday from Italian Industry Minister Corrado Passera saying that the Euro could survive even if Greece were to leave the union’s single currency. Trusting anything from any minister in Italy is a hard issues when you consider that Italy is one of the PIIGS and is a larger problem for the Euro than all other four PIIGS combined.

This is one of those situations where wording on headlines has to be closely watched… and interpretation depends upon many things.  Traders and investors will shoot first and ask questions later.

JON C. OGG